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Dinner in Restaurant

Instant Asset Write-Off

Here's a heads-up on a tax break you may be eligible for. The deadline to claim the instant asset write-off is June 30 2023.

What is the instant asset write-off?

The instant asset write-off incentive lets eligible businesses claim an immediate tax

deduction for certain depreciating assets in the year the asset is first used or installed ready for use, provided they are used for business and not personal use.

That means the asset needs to be ready for the business to use.

Ideally, you would also have received the invoice before June 30 2023

What is classed as a depreciating asset for my business? A depreciating asset is an asset that has a limited life expectancy (effective life) and can reasonably be expected to decline in value (depreciate) over the time it is used. For example, equipment, computers, vehicles

Assets must:

  • cost less than the instant asset write-off threshold

  • be purchased and used in the year the write-off is claimed

When does it end? June 30, 2023

What happens after June 30, 2023? Standard tax rules will apply. You need to depreciate assets over their effective life rather than being able to write them off immediately.

Can I finance the asset purchase? You can still finance the asset purchase! As long as you set up the correct type of loan under the right entity, you can receive the tax benefit. Your interest cost on loan would also be tax deductible.


If you need help to clarify the instant asset write-off and determine if an asset is eligible, we're always here to talk and happy to help ensure you are heading in the right direction.


1 Comment

Matt Meehan
Matt Meehan
May 13, 2023

Thanks Ian

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